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Economic Incentives for Habitat Conservation: A Literature Review

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  • Andrés Vargas
  • Mauro Reyes

Abstract

Increasing evidence on the accelerated deterioration of ecosystems and biodiversity loss has spurred the design and implementation of conservation strategies based on economic incentives. Two arguments justify this approach: i) the inalienability of private property, and ii) economic efficiency. The objective of this paper is to analyze, in terms of economic efficiency and environmental effectiveness, the various types of economic instruments used for promoting habitat conservation. Through an extensive literature review, we find that the main difficulty facing economic incentives is the uncertainty surrounding the effect of instruments on the total area to be conserved and its spatial configuration, which in turn implies uncertainty over the type and quantity of environmental services supplied.

Suggested Citation

  • Andrés Vargas & Mauro Reyes, 2011. "Economic Incentives for Habitat Conservation: A Literature Review," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 74, pages 151-170.
  • Handle: RePEc:lde:journl:y:2011:i:74:p:151-170
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    Keywords

    Conservation; biodiversity; environmental services; economic incentives;

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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